The cash ban has caused serious problems for the cement industry, where as much as 60% of business is done in cash. The company is hoping that demand will be restored by a government push for digital payments and low-cost homes, combined with the recent cut in interest rates.
According to Bloomberg, Ambuja shares have decreased by 12.4% since the announcement on 8 November, while UltraTech Cement shares dropped 15%. Emkay Global Financial Services analyst Sanjeev Kumar Singh has reported that this demand disruption is predicted to push down cement demand recovery by at least a year, leading to an expected from of 0.5% in the financial year 2016-2017, against an earlier estimate of 5.5% growth.
